AN ASSESSEMNT OF THE EFFECTS OF STAKEHOLDERS INVOLVEMENT

ON PERFORMANCE OF CONSTRUCTION PROJECTS IN KENYA:

A CASE STUDY OF ISOLATION CENTER- MACHAKOS
LEVEL 5 HOSPITAL

BY
BRIAN MURIUKI MITHAMO

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE DIPLOMA IN PROJECT MANAGEMENT
SUBMITTED TO THE KENYA INSTITUTE OF MANAGEMENT

NOVEMBER 2020

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 DECLARATION

Declaration by the student

This research is my original work and has not been presented to any other examination
body. No part of this research should be reproduced without my consent or that of The
Kenya Institute of Management.
Name: BRIAN MURIUKI Signature_______________Date _________________
KIM/49381/18

Declaration by the supervisor

This research has been submitted for examination with my approval as The Kenya Institute
of Management supervisor.
Name: JADIEL M. MAINA Signature________________Date________________
Lecturer supervising

Declaration by the management

For and on behalf of The Kenya Institute of Management
Name: SUSAN MAINA Signature__________________Date_______________
Branch Manager- Machakos

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 DEDICATION
This research proposal is dedicated to my family members; my father Eliud Muchira
and mother Sarah Wanjiru for instilling the value of education in me and for the many
sacrifices they made during the process of completing this project proposal.

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 ACKNOWLEDGEMENT
The process of developing this research proposal has been very invaluable. Different
institutions, organizations and individuals have been very supportive and indeed have
largely influenced this document in being what it is today. I would like to pass my
sincere gratitude to my beloved parents and all those who in one way or another
ensured the successful completion of this project. I wish to extremely appreciate my
supervisor Mr. Maina J. M for finding time to correct the work and give the necessary
advice and support and also for his patience, sharing of sincere and valuable guidance
extended to me. I would also like to acknowledge my sincere thanks to The Kenya
Institute of Management for giving me all the necessary facilities and research material
which has been invaluable for this proposal.

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 ABSTRACT
Stakeholders’ involvement in constructions projects plays an important and critical role
in project management. In Kenya, constructions projects are a sector that has been put
under emphasis by the government due to it being the key incentive to spur economic
growth and country’s development on a large scale. It has been mentioned by the earlier
project management scholars that stakeholders’ involvement is critical success factor
for any construction project within any organization. Stakeholders involvement in
project success such as construction projects is valuable with regard to the costs and
quality of portfolio projects and the cost and time associated with the project portfolio
management development. Therefore, for a project manager to carry out a successful
project and met users and organization requirement, stakeholders’ involvement and
satisfaction is the key to determine whether a project fails or succeeds. The research
study will be on an assessment of factors affecting stakeholder involvement in
construction projects in Kenya. A case study of Isolation Center Machakos Level 5
Hospital which has been in existence for 8 months. The specific objectives of the study
will be; to find out how availability of capital affect stakeholders involvement in
construction projects in Kenya, to find out how project time affect stakeholder
involvement in construction project in Kenya, to examine how project quality affect
stakeholders’ involvement in construction project in Kenya and to examine how labour
management affect stakeholders’ involvement in construction project in Kenya. The
target population will be all employees of Isolation Center Machakos level 5 Hospital.
A sample of 42 respondents will be obtained from the parent population of 84
respondents using stratified random sampling. Data will be collected using open and
closed-ended questions. Data will be analyzed using descriptive statistics. The
descriptive statistics include percentage, cumulative frequency and cross tabulation.
Data will be presented inform of tables, pie charts and graphs.

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 TABLE OF CONTENTS
DECLARATION………………………...……............................................................ii
DEDICATION..............................................................................................................iii
ACKNOWLEDGEMENT............................................................................................iv
ABSTRACT...................................................................................................................v
TABLE OF CONTENTS.............................................................................................vi
LIST OF TABLES.....................................................................................................viii
LIST OF FIGURES ....................................................................................................ix
OPERATIONAL DEFINITION OF TERMS...............................................................x
ABBREVIATIONS......................................................................................................xi
CHAPTER ONE
INTRODUCTION OF THE STUDY
1.1 Introduction...........................................................................................................1
1.2 Background of the Study......................................................................................1
1.3 Statement of the Problem......................................................................................4
1.4 Objectives of the Study.........................................................................................6
1.5 Research Questions...............................................................................................7
1.6 Significance of the Study......................................................................................7
1.7 Limitations of the Study........................................................................................8
1.8 Scope of the Study................................................................................................9
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction ........................................................................................................10
2.2 Review of Theoretical Literature .......................................................................10
2.3 Critical Review...................................................................................................28
2.4 Summary.............................................................................................................29
2.5 Conceptual Framework.......................................................................................30

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 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction .......................................................................................................32
3.2 Research Design .................................................................................................32
3.3 Target Population................................................................................................32
3.4 Sampling Design.................................................................................................33
3.5 Data Collection Instruments...............................................................................33
3.6 Data Analysis Methods.......................................................................................34
REFERENCES………………………………………………………………………35
APPENDICES
APPENDIX I: Introductory Letter
APPENDIX II: Questionnaire
APPENDIX III: Work Plan
APPENDIX IV: Research Budget

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 LIST OF TABLES

Table 3.3.1 Target Population………………………………………………………....32

Table 3.4.1 Sample Size………………………….……………………………………33

viii
 LIST OF FIGURES

Figure 2.5.1 Conceptual Framework………………………………………………………30

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 OPERATIONAL DEFINITION OF TERMS

Capital - This is the term used to define financial assets, such as funds held in deposit
accounts and/ or funds obtained from special financing sources.
Labour management- Is the activity or part of management concerned with all aspects of
managing the work of others.
Organization - An organization is the rational coordination of activities of a number of
people for the achievement of some common explicit purpose or goal, through division of
labour and function, and through a hierarchy of authority and responsibility.
Project - A unique set of coordinated activities, with a definite start and finishing point,
undertaken by an individual or organization to meet specific objectives within defined,
scheduled cost and performance parameters
Project manager - This is a person who has the overall responsibility for the successful
initiation, planning, design, execution, monitoring, controlling and closure of a project.
Project quality - A product or service that has the ability to perform satisfactorily and is
suitable for its intended purpose.
Project time- is the definition of the duration of the time needed to complete the activities
of the project
Stakeholder’s involvement - This is the process by which an organization involves people
who may be affected by decisions it makes or can influence the implementation of its
decisions.
Stakeholders - Individuals and organizations who are actively involved in the project, or
whose interests may be positively or negatively affected as a result of project execution or
successful project completion.

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 LIST OF ABBREVIATIONS/ACRONYMS

PM - Project Management
KIM - Kenya Institute of Management
BOOT - Build- own- operate- transfer
BOT - Build- own- transfer
GNP - Gross national product

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xii
 CHAPTER ONE
INTRODUCTION OF THE STUDY
1.1 Introduction
This chapter represents the background of the study, statement of the problem, objectives
of the study, research questions, significance of the study, limitation of the study and
scope of the study

1.2 Background of the study

A stakeholder is genially an individual or organizations who are invested in a particular
project and who are affected by this project in same way and also their input has a direct
impact on the projects upshot. Stakeholders’ involvement is the process by which an
organization involves people who may be affected by decisions it makes or can influence
the implementation of its decisions. In a construction project context, the number of
stakeholders is generally large and can vary significantly in the degree of influence.
(Mitchell et.al. 1997) identified power, legitimacy and urgency as the key stakeholders’
characteristics. The nature and number of the stakeholders will be determined according
to the type and size of projects (Jeffery, 2009).

It has been mentioned by the earlier project management scholars that stakeholders’
involvement is critical success factor for every project within any organization
(Adrienne.W, 2014). The predominant idea behind that has been oriented in
understanding the extent of stakeholders’ contribution on project performance within
organization (Rabe and Betsil, 2009). Further, involvement of stakeholder in project is
valuable concern for project managers to address the time, cost and quality constraints
associated with project portfolio management. Therefore, for a project manager to carry
out a successful project and to meet users and organization requirement stakeholders’
involvement and satisfaction is the key to determine whether a project fails or succeeds.

Stakeholders are divided into two main classes immediate (direct) stakeholders and
aberrant (indirect) stakeholders. Those specifically required in the project are direct
stakeholders. The project supervisor, project bolster experts, colleagues, site faculty

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contractual workers and subcontractors (Lester, 2007). Indirect stakeholders are not a part
of the business but have an interest in its income. Indirect stakeholders are not impacted
by the project- those not affected are the costumers and end users, because their concern
is with the finished project. Stakeholders involvement provides opportunities to further
align business practices with societal needs and expectations, helping to drive long-term
sustainability and shareholder value. Stakeholders involvement is intended to help the
practitioners and their organization, to complete in an increasingly complex and ever-
changing business environment, while at the same time bringing about systemic change
towards sustainable development (Jeffery, 2009).

One of the main reasons projects fail is because the deliverables were not what the
customer wanted or they did not meet that customers’ needs. To ensure project success, it
helps that you know all of the key stakeholders on your project, how they prefer to
communicate, what their need are, and what the acceptable end results are, and what the
acceptable end results are. (Elsevier B.V, 2015) Engaging stakeholders during and
especially at the beginning of your project will help reduce and uncover risks and
increase their “buy-in”. When stakeholders are adequately engaged; their influence
spreads far and wide (Lori, 2019).

Stakeholders involvement can take different level and forms during the project execution-
this can line up along with the project predefinition and initiation requirements, the
organization strategic objectives though negotiation, consultation, partnership and project
final goals. (Kauppeinen, 2009). These can range along a continuum from contribution of
inputs, predetermination of projects, information sharing, consultation, decision making,
partnership and empowerment. Its mandatory for a project manager to identify the
stakeholders and manage their expectations throughout the life cycle of the project
(Lester, 2007).

Influence and power of a stakeholder can affect the success or failure of an initiative
(project). Power refer to the ability of the stakeholder to affect the implementation of a
project due to his or her strength or force (Windberg, 2009). Power can be important in

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terms of supporting as well as in terms of constraining an initiative. For the success of an
initiative, it is very important know whether- and how- a stakeholder can take action, how
he/she can be involved and how much capacity he/she has to contribute. Concerning
failures, it is important know the possible (negative) influence a stakeholder has to
constrain or even stop an initiative (Tillman, 2012).

Stakeholder involvement in project success such as construction projects is valuable with

regard to the costs and quality of portfolio projects and the cost and time associated with
the project portfolio management development. Therefore, for a project to be successful
stakeholders’ involvement is key and they determine whether a project fails or succeeds
(Philips. R, 2003). Project management stakeholders may have financially invested in the
projects they oversee or may have non-monetary interests in the outcome of their
projects. Stakeholders also have ethical obligations to the companies they manage,
including the responsibility to report exceeding their budgets and reporting scheduling
oversights or failure to meet milestone dates (Adrienne.W, 2014).

Stakeholders are a wealth of knowledge about current processes, historical information,

and industry insight. Many times theteam members will have been at the company or on
the project longer that the project manager or the project team. It is important to involve
all the key stakeholders when gathering and documenting requirements to avoid missing
major deliverables of the project (Brian, 2008). Project managers, or others who are in
charge of deliverables, may not be experts on every project. Key stakeholders can
provide requirements or constraints based on information from their industry that will be
important to have when understanding project constraints and risks (Lori, 2019).

The more you engage and involve stakeholders, the more you will reduce and uncover
risks on your project. When discussing initial requirements, project needs and constraints,
stakeholders may bring up issues or concerns about those things in meetings. (Ballard,
2008) Uncovering risks and then discussing a plan to mitigate them before issues arise
will dramatically increase the success of your project. Involving knowledgeable
stakeholders during this process will help (Freeman and R.E , 1984).

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By gathering and reviewing project requirements with stakeholders, you will get their
“buy-in”, which will in turn help increase project success. If you can’t meet stakeholders
needs, due to conflicting needs or priorities, set expectations early in the project life
cycle. (Mitropoulos, 2002) This will help you manage the relationship throughout the
project instead of there being surprises at the end. Stakeholders should always be aware
of the project scope, key milestones, and when they will be expected to review any
deliverables prior to final acceptance (Hughes, 1991). The more regularly you engage and
involve stakeholders from the start, the more likely you will have a positive project
conclusion. By the end of the project, the team members should have already been aware
of delivery expectations, risks and how to mitigate the risks (Beierle, 2001). They also
should have reviewed draft deliverables along the way. This process should help avoid
any surprises at the end of your project closure phase (Lori, 2019).

1.3 Statement of the problem

In the construction industry, the aim of project control is to ensure that projects finish on
time, within budget and achieve other project objectives (3). A successful project is the
only project which has accomplished its technical performance, maintained its schedule
and remained within budgetary cost (4). Hence, construction time and cost are
fundamental and most important parameters for measuring success of any project. Poor
performance of time and cost can lead to a significant amount of time and cost overrun.

Project management researchers have often measured the effect that specific inputs have
on project success. For a project to be successful capital adequacy is key and determine
whether a project fails or succeeds. Cost overrun can be considered as the difference
between cost of a project and its cost limits. It occurs when the resultant cost target of a
project exceeds its cost limits where cost limits of a project exceed its cost limit of a
project refers to the maximum expenditure that the client is prepared to incur on a
completed building project while target cost refers to the recommended expenditure for
each element of a project (6). Construction cost which is out of control adds to
investment pressure, increases construction cost, affects investment decision making (7).

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This study intends to find out how stakeholder’s involvement in construction projects
affects availability of capital.

Project time is an important factor in a construction project because time is an essential

cost due to inflation, interest rate on cost, delay risks, opportunity cost of the investment
on site and cost of managing site during delay (Manus, 2004). Time overrun can be
defined as late completion of works as compared to the planned schedule or contract
scheduled program. It may be caused by any party to the contract and may be a direct
result of one or more circumstances. A contract delay has adverse effects on both the
owner and contractor and it often raises the contentious issue of delay responsibility,
which may result in conflict that frequently reach the courts (5). This study intends to
acknowledge how stakeholders’ involvement in construction projects affects project time.

A construction project plays a vital role in the economy. Construction project are
complex in its nature because it comprises large number of parties. Robinson (2009),
discovered that major factors affecting performance quality of construction projects in the
study area are related to the use of unskilled and incompetent contractors. More so there
is poor on-site supervision and lack of commitment by supervising team shouldered with
the responsibilities of ensuring compliance to approved standard (Robinson, 2009).To
minimize the impact of these factors and improve performance quality of construction
projects, proper and modern construction equipment, techniques and methods should be
adopted by construction firms. The need for achieving quality of the finished product in
the project construction is very important (Tabish, 2012). This study intends to establish
how stakeholder’s involvement in construction affects project quality.

Project schedules are based on productivity expectations. Each task or job requires a
certain number of man-hours to complete and are used to determine how many workers
you will need to complete each one within a given amount of time (Scott.H, 2007). When
workers don’t show up, get injured or goof off on the job, it can lower your productivity
levels, cause delays and throw your schedule out of whack. This could force you to bring
in additional workers or sub out more work which in turn lowers your profit margins

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(Zwikael, 2008). The study intends to find out how stakeholder’s involvement in
construction project affects labour management.

1.4 Objectives of the study

1.4.1 General objective
The general objective of the study is on an assessment of the effects of stakeholders
involvement on performance of construction projects in Kenya. A case study of Isolation
Center Machakos Level 5 Hospital-Machakos County.

1.4.2 Specific objective

i. To find out how availability of capital affects stakeholders’ involvement in
construction projects: A case study of Isolation Center Machakos Level 5 Hospital-
Machakos County.
ii. To find out how project time affects stakeholders’ involvement in construction
projects: A case study of Isolation Center Machakos Level 5 Hospital-Machakos
County.
iii. To examine how project quality affects stakeholders’ involvement in construction
projects: A case study of Isolation Center Machakos Level 5 Hospital-Machakos
County.
iv. To examine how labour management affects stakeholders’ involvement in
construction projects: A case study of Isolation Center Machakos Level 5 Hospital-
Machakos County.

1.5 Research questions

i. To what extent does availability of capital affects stakeholders involvement in
construction projects?
ii. To what extent does project time affects stakeholders involvement in construction
projects?
iii. How does project quality affects stakeholders involvement in construction projects?

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iv. How does labour management affects stakeholders involvement in construction
projects?

1.6 Significance of the study

1.6.1 The Government of Kenya
The information obtained may also provide crucial information to the Government of
Kenya in ensuring that the essence of involving stakeholders in construction projects are
established. The Government may be able to provide the necessary support to the
government construction projects that operates under the county governments.

1.6.2 County Government of Machakos

The study may help the county government of Machakos to establish factors affecting
stakeholders involvement in construction projects. The study will give knowledge that is
evidence based and insight concerning the participation of the stakeholder in construction
project and how being involved affect stakeholders involvement in construction projects.
The study will also provide more information on the involvement of the stakeholders in
construction projects.

1.6.3 Future researchers

The study will serve as premise for future studies by researchers into an assessment of
factors affecting stakeholder’s involvement in construction project execution. The study
will serve as a scholar’s stimulus to conduct more study in the area of the involvement of
stakeholder in projects that are school based. This study will explain factors affecting
stakeholder’s involvement in projects remembering the point of successful projects
within cost, time, quality, desire and extent of the stakeholders. The findings of the study
through this project may enhance capacity and response by management and stakeholder
leading to improvement in construction project execution.

1.6.4 Academicians
Academicians will be in a position to identify major challenges affecting stakeholder’s
involvement in construction projects in Kenya. The study will then make them more

7
knowledgeable by ensuring that they are determined to know the major factors affecting
stakeholder’s involvement. To them, it may increase their knowledge on research
especially on issues relating to stakeholders involvement in construction projects in
Kenya.

1.6.5 Isolation Center Machakos Level 5 Hospital Staff

The Isolation Center Machakos Level 5 Hospital staff will be able to benefit from the
research study. They will be in a position to identify the real factors affecting
stakeholder’s involvement in construction project in Machakos. They will therefore use
that information to tackle issues relating to stakeholders involvement in construction
projects and take the necessary action.

1.6 Limitations of the study

During the time of the study some respondents may delay in returning the questionnaires
due to personal reasons. To solve this limitation, the researcher will request the
respondents to return their questionnaires immediately after they are fully filled. Some
employees may be hostile to researcher and unwilling to respond to questionnaires which
they may feel that would not help them in any way. To solve the limitation, the researcher
will act friendly and use polite language while dealing with the respondents. Some of the
respondents may not be willing to give information thinking that their identity will be
revealed and that will work on their disadvantage. To solve this, the researcher will
request the respondents not to write their names anywhere in the questionnaire. To solve
the limitation also, the researcher will inform the respondents that data to be collected
will used for academic purpose only and will not be disclosed to anyone else.

1.7 Scope of the study

The study is centered on an assessment of factors affecting stakeholders involvement in
construction projects in Kenya. The scope is limited to Isolation Center Machakos Level
5 Hospital-Machakos County. The target population will be 84 employees which will
contain the investors, project managers, supervisors, construction engineer, project

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contractors and casual workers. Forty two respondents will be sampled from the target
population of 84 respondents. The study will be carried within a period of six months.

CHAPTER TWO

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 LITERATURE REVIEW
2.1 Introduction
This chapter discusses the work of other researchers in this or other related topic. This
chapter represents the review of theoretical literature, review of critical literature, summary
and gaps to be filled and conceptual framework.

2.2 Review of Theoretical literature

2.2.1 Performance of construction projects
The success of a construction project depends on its performance, which is measured
based on timely completion, within the budget, required quality standard and customer
satisfaction. Construction projects are faced within many challenges before completion
causing extensive delays and thereby exceeding initial time and cost delays. ()
Construction industry plays a major role in development and achieving the goals of
society. Construction is one of the largest industries and contributes to about 10% of the
gross national product (GNP) in industrialized countries and it is considered one of the
industries on which national prosperity depends (Ejazet, 2013).

The construction industry, which has a huge effect on national economies, feature several
major players who both improve social living standards, and develop the construction
sector. These players are clients, contractors, consultants, stakeholders, shareholders,
stakeholders and regulators. Each player’s project performance is affected by factors that
impact every aspect of construction projects (Amusan, 2012). The construction industry is a
very competitive high- risk business. Increasing uncertainties in technology, budgets and
development process create a dynamic construction industry (Kim, 2008).

Construction projects are now more complex and difficult and the construction project team
faces unprecedented challenges. The study of project success and critical success factors is
means of understanding and thereby improving the effectiveness of construction projects.
However, the concept of project success remains ambiguously defined in the mind of
construction professionals. There is no industry-accepted or standardized definition of
project success because the fact is that individual project teams find themselves in unique

10
situations, implying that their definition of success will differ from that of another project
team. The construction industry is usually very large, complex and different from other
industries. The industry needs much investment and involves various types of stakeholders
and participants. Construction projects usually need extended time, from one year to several
years as per the set objectives. General contractors for construction projects have found that
the projects are becoming bigger and bigger, while construction tasks have become more
complicated and diversified. Therefore, during a long tenure, there can be many hindrances
or barriers that may obstruct its smooth operation.

According to Amusan (2012), the construction industry contributes significantly in terms of

scale and share in the development process. The construction products provide the necessary
public infrastructure and private physical structures for many productive activities such as
services, commerce, utilities and other industries. The industry is not only important for its
finished product, but it also employs a large number of people (directly and indirectly) and
therefore has an effect on the economy of a country/region during the actual construction
process. However, many local construction projects report poor performance due to many
evidential project-specific causes such as: unavailability of materials; excessive
amendments of design and drawings; poor coordination among participants, ineffective
monitoring and feedback, and lack of project leadership skills (World Bank, 2010).

The government formed the National Construction Corporation that sought to enable African
contractors enter the industry, a very competitive market. Its philosophy was ‘learning by
doing’ whereby the African contractors were to be assisted and trained during the
construction processs. The functions of National Construction Corporation were to help
contractors obtain work, provided them with adequate finance, assist them with the actual
construction process (Nthenge, 2009). In 2011 the government formed The National
Construction Authority to streamline, overhaul and regulate the construction industry in
Kenya. The industry has for many years suffered poor legislative framework and has been
dominated by quacks and unqualified persons. Kenya’s construction sector provides many
opportunities for architectural, enginnering or construction. There is a strong demand for
office buildings, hotels and infrastructure projects. The demand for residential buildings is

11
also high due to the country’s growing affluence. There is an upsurge demand by both locals
and expatriates for well planned residential areas, quality housing and amenities. ()

2.2.2 Stakeholders involvement

A theory is a set of interrelated concepts definitions and propositions that present a
systematic view of a phenomenon by specifying relations among variables, with the
purpose of explaining and predicting phenomenon. Interest in stakeholders has grown
considerably since Freemans (1984) seminal work “Strategic Management” was published.
The interactions and interrelationships between stakeholders largely determine the overall
performance of a construction project and have the crucial responsibility for delivering a
project to successful completion. (Freemans, 1984)

Stakeholders’ involvement is an important issue in project management as a project can be

seen as a temporary coalition of stakeholders to create something together. Freeman defines
a project stakeholder as “a person or a group of persons who are influenced by or able to
influence the project” and also he defines a stakeholder in an organization is “any group or
individual who can affect or is affected by achieving the organizations objectives”.
Nevertheless, a broad stakeholder’s definition was presented by R. Phillips defined
stakeholders as parties contributing to and/or being affected by a decision making process
(Phillips. R, 2003). Stakeholder management is rooted in business management and often
associated with ‘corporate social responsibility’ where ethical consideration is emphasized
but an economic factor influences the implementation of the concept also. Stakeholder
management should ideally be auditable and supported by the executives of an
organization.( Pitcher, 1992)

Stakeholders’ involvement is the process by which an organization involves people who

may be affected by decisions it makes or can influence the implementation of its decisions.
Stakeholders often provide needed resources and have the ability to control the interaction
and resource flows in the project. They also have ultimately strong impact on an
organizations survival and therefore appropriate management and involvement of key

12
stakeholders should be an important part of any project management plan (Elsvier, 2015).
Early involvement of stakeholders allows room for creative solutions and the intensive
exchange of ideas since it enables projects to utilize the knowledge base of the stakeholder.
(Cardenas, 2018)

The main participants in a construction project coalition are the client, the architect and the
contractor. The interaction and interrelationships between these participants largely
determine the overall performance of a construction project and have the crucial
responsibility for delivering a project to successful completion (Marco.S,
2004).Stakeholders can be divided into internal and external stakeholders- internal
stakeholders being those directly involved in an organizations decision making process
(e.g., owners, customers, suppliers, employees) and external stakeholders being those
affected by the organization activities in a significant way (e.g., neighbors, local
community, general public, local authorities). In construction, there has traditionally been a
strong emphasis on the internal stakeholder’s relationship such as procurement and site
management, while the external stakeholders’ relationships to some extent have been
considered a task for public officials via the rules and legislation that concern facility
development. (Jeffery, 2009)

While theorists and practitioners consistently call for widespread participation in

stakeholders’ management, few if any studies have empirically tested the assumption that
the representation participation of stakeholders during the planning process will lead to
stronger management plans (Jae, 2018). The participation of stakeholders from the
beginning of a project increases trust, understanding and support. Including key parties in
the decision- making process also helps build a sense of ownership over a proposal and
ensures that all interests are reflected in the final management plan.(Neupane, 2012)
Stakeholders may be actively involved in the program or have interests that may be
positively or negatively affected by the performance or completion of the program.
Different stakeholders may therefore have competing interests that might create conflicts
within the program. Stakeholders may also exert influenced over the program, its
deliverables and the project team in order to achieve a set of outcomes that satisfy given

13
strategic business objectives or other needs (Austin.T, 1986). Project stakeholders have
varying levels of authority and responsibility when participating in a project. This level
changes over the course of the project’s life cycle. Their involvement may range from
occasional contributions during needs assessment, participation in specific activities, to full
project sponsorship which includes providing financial, political or other support. On the
other hand, some stakeholders may also detract from the success of the project, either
passively or actively. These stakeholders require the projects manager’s attention
throughout the project’s life cycle as well as planning to address any issues they may arise
(Collier.C.A, 1984)

Stakeholders’ participation can also contribute valuable resources, such as time, personnel,
and sometimes funding, which will enhance plan quality by allowing for more expansive
data collection, better monitoring programs and more regular plan update. Finally, with
participation from a range of stakeholders comes knowledge of the resource and technical
expertise that will inevitably contribute to higher plan quality. The presence of certain
stakeholders in the planning process can thus boost the collective capacity of planning
participants, which should enhance each individual component of a plan (Tabish, 2012).
The stakeholders approach has been described as a powerful means of understanding the
firm in its environment (Oakley, 2013). This approach is intended to broaden the
management’s vision of its roles and responsibilities beyond the profit maximization
function and stakeholders identified in input- output models of the firm, to also include
interests and claims of non-stockholding groups.

The project stakeholders should be involved in the articulation of the development problem
and the proposed development solution. Ownership, learning and the commitment among
all stakeholders increase through early involvement in the project cycle. Engagement of
stakeholders in all stages of the project lifecycle as much as possible can lead to effective
project implementation (Dipasquale, 1982). Researchers believe that stakeholder
participation throughout a project can lead to tangible benefits to stakeholders’ wellbeing
and also enhances their project ownership. Active participation of stakeholders and young
people in programming can foster greater sustainability of programs. Furthermore, it is

14
noted that stakeholder participation enhances ownership and commitment to development
initiatives (Goss. C.A, 1980).

Patton (2008) elaborated that the stakeholders models entails that all persons or groups with
legitimate interests participating in an enterprise do so to obtain benefits and that there is no
pre-set priority of one set of interests and benefits over another (McManus, 2004).
Associated corporations, prospective employees, prospective customers and the public at
large, needs to be taken into consideration. Overall, a central and original purpose of
stakeholder’s theory is to enable managers to understand stakeholders and strategically
manage them (Patton, 2008). The managerial importance of stakeholder management has
been accentuated in various studies (Zwikael, 2008) that demonstrate that just treatment of
stakeholders is related to the long term survival of the organization (Mc. Manus, 2004).

While having its origins in strategic management, stakeholders theory has been applied to a
number of fields and presented and used in a number of ways that are quite distinct and
involve very different methodologies, concepts, types of evidence and criteria of
evaluation. As the interest in the concept of stakeholders has grown, so has the proliferation
of perspectives on the subject (Oakley,2013). This theory emphasizes the significance of
the relationship between the top management staff with the stakeholders. Specifically,
managers should understand the success of the projects can be influenced greatly by the
participation of various stakeholders. These stakeholders will participate depending on the
relationship they foster with the top management and not junior workers acting on their
behalf (Zwikael, 2008).

Traditionally, construction projects start from the premise that the customers know what
they want and what they need. Value creation is, however, more than implementing an
extensive set of features. Customers do not seek products or services in themselves, they
want solutions that support their processes and create value when used. Therefore, during
the project definition phase, the task of the management is to challenge the customers’ self-
understanding about the projects objectives, reveal conflicts between the customer and the
other stakeholders, and confront the customers’ desires by exploring alternatives that were

15
not previously considered.( Kauppinen, 2009) New approaches help to expose the customer
to alternative means of accomplishing their purposes beyond those they had previously
considered and help the customers understand the consequences of their desires. Moreover,
early stakeholder involvement enables projects to utilize the knowledge base of the
stakeholders. (Tillman, 2012)

Throughout the construction process there is relation between the process participants
which affects the entire process. Construction process is difficult and requires many
different skills. It is a process which is staggered and which calls for an engagement of
considerable funds. Throughout the process a variety of works must be performed;
planning, designing, logistics and engagement of the investment (Addison, 1973). Each
person who is an immediate process participant must have applicable knowledge,
occupational background, experience and frequently, adequate professional licenses.
Stakeholders demonstrate different levels of responsibility and power. Their role in
investment project execution can be changing depending on the project life cycle.
Stakeholders can have both a positive and a negative effect on project goals. Interestingly,
identifying stakeholders is of key importance here as the process is continuous and quite
complex- it is critical- ignoring the effect of specific stakeholders on project execution it
can prolong the project execution time and increase the costs (Crandal K.C, 1973).

Often there is more than one major stakeholder in the project. An increase in the number of
stakeholders adds stress to the project and influences the projects complexity level. The
business or emotional investment of the stakeholder in the project and the ability of the
stakeholder to influence the project outcomes or execution approach will also influence the
stakeholder complexity of the project (Hendrickson, 1984). In addition to the number of
stakeholders and their level of investment, the degrees to which the project stakeholders
agree or disagree influence the projects’ complexity. Take the time to identify all
stakeholders before starting the project. Include those who are impacted by the project, as
well as groups with the ability to impact the project (Mugenda, 2003).

16
 The project manager should conduct a stakeholder’s analysis, or an assessment of projects
key participants, and how the project will affect their problems and needs, since key
stakeholders can make or break the success of a project. Even if all the deliverables are met
and the objectives are satisfied, if your key stakeholders aren’t happy, nobody is happy
(Lester J, 2007). He should identify their individual characteristics, interests and find out
what motivates them, as well as what provokes them. Measure the degree of which
stakeholders can influence the project. The more influential a stakeholders is, the more the
project manager will need their support. The project manager should nail down
stakeholders specific expectations and ask clarification when needed to be sure they are
completely understood. Every stakeholder may have a different idea of what project
success looks like. Discovering this at the end of the project is a formula for failure. Gather
definition upfront and include them in the objectives to help ensure that all stakeholders
will be supportive of the final outcomes (Lori, 2019).

2.2.3 Availability of capital

Capital is the term used to define financial assets, such as funds held in deposit accounts
and/ or funds obtained from special financing sources. The construction process is capital
intensive. From inception, cost is incurred at every stage. However, the major cost is
incurred during the actual construction stage where irreversible commitment of fund is
undertaken in the procurement and deployment of resources such as labour, plant, materials
and managerial expertise to achieve the finished product. According to Harris and Mc.
Caffer (2005), the contractor’s working capital or finance is the resource he requires to
facilitate the smooth execution of the construction work on site. It is made up of cash at
hand, bank loan overdraft, credit purchases, work- in- progress, recoverable debt. (Mitchell
et.al, 1997).

The first funding option of capital investment is always a project’s own operating cash
flows, but that may not be enough to cover the anticipated cost. It is more likely that the
project will resort to outside financing to make up for any internal shortfall (Betsil, 2009).
Capital investment is meant to benefit a project in the long run, but it nonetheless can have
short-term downsides. Intensive, ongoing capital investment tends to reduce earnings

17
growth in the short-term, and that is never a popular move among stakeholders of a public
project. Moreover, the total amount of debt a project has on the books is a figure that is
closely watched by stakeholders and investors (Adrienne.W, 2014).

Working capital also comprises the assets needed to lubricate the daily transactions of the
construction business. Pitcher. R (1992) also defined working capital as the margin between
current assets and current liabilities, i.e., current assets less current liabilities. Working
capital requirements, its composition and use, changes as construction operation progresses
on site. Stakeholders contribute to the wealth creating capacity of a corporation and are
therefore, its potential beneficiaries and/or risk bearers. They act as gatekeepers to resources
that firms need. For example, stakeholders like investors organizations bodies can fund the
project, customers decide to buy or not the products/services of the organization, employees
decide to share or not their innovative ideas with their employer or defect to a competitor
and communities decide to let an organization operate from a location in their area or not
(Windberg, 2009).

The ability of a corporation to establish favorable interactions with a multitude of

stakeholders is a necessary condition for the maximization of shareholder value. The quality
and effectiveness of stakeholder relations management determines an organizations
capability generate sustainable organization wealth (Freeman and R.E, 1984). The
broadening of the perception of social needs by projects, in terms of extending their
liabilities beyond the needs of stakeholders, can become an important asset for the project. It
can build new unique competencies distinctive from its competitors and can yield good
reputation and credibility ( Phillips. R, 2003).

Capital investment is the procurement of money, obtained by a project in order to

accomplish its stakeholders’ goals and objectives. An individual, a venture capital group or
a financial institution may make a capital investment in a project. A sum of money is
handed over as a loan or in return for a promise of repayment or a share of the profits down
the road (Harris, 2005). The executive of an organization may make a capital investment in
the project. They buy long term assets that will help the project run more efficiently or grow

18
faster. In either case, the money for capital investment has to come from somewhere. A new
project might seek capital investment from any number of sources including venture capital
firms, angel investors, traditional financial institution and its stakeholders. The capital is to
be used to further develop and market its products (Pitcher. R, 1992).

Investment in a constructed facility represents a cost in the short term that returns benefits
only over the long term use of the facility. Thus, costs occur earlier than the benefits, and
owners of facilities must obtain the capital resources to finance the costs of construction
(Hughes.T, 1991). A project cannot proceed without adequate financing, and the cost of
providing adequate financing can be quite large. For these reasons, attention to project
finance is an important aspect of project management. Finance is also a concern to the other
organizations involved in a project such as the general contractor and material suppliers.
Unless an owner immediately and completely covers the costs incurred by each participant,
these organizations face financing problems of their own (Achterkamp, 2008).

At a more general level, project finance is only one aspect of the general problem of
corporate finance. If numerous projects are considered and financed together, then the net
cash flow requirement constitutes the corporate financing problem for capital investment.
(Brian.A, 2008) Whether project finance is performed at the project or the corporate level
does not alter the basic financing problem. In essence, the project finance problem is to
obtain funds to bridge the time between making expenditures and obtaining revenues
(Deming, 1986).

Based on the conceptual plan, the cost estimated and construction plan, the cash flow of
costs and receipts for a project can be estimated. Normally, this cash flow will involve
expenditures in early periods. Covering this negative cash balance in the most beneficial or
cost effective fashion is the project finance problem (Freeman and R.E, 1984). During
planning and design, expenditures of the owner are modest, whereas substantial costs are
incurred during construction. Only after the facility is complete do revenues begin. In
contract, a contractor would receive periodic payments from the owner as construction
proceeds. However, a contractor also may have a negative cash balance due to delays in

19
payment and retainage of profits or cost reimbursements on the part of the owner (Jeffery,
2009).

Project finance may come from a variety of sources. The main sources include equity, debt
and government grants. Equity refers to capital invested by sponsor(s) of the project and
others while debt refers to borrowed capital from banks and other financial institutions. It
has fixed maturity and a fixed rate of interest is paid on the principal. Financing from these
alternative sources have important implications on project’s overall cost, cash flow, ultimate
liability and claims to project incomes and assets (Neupane, 2012). Equity is provided by
project sponsors, government, third party private investors and internally generated cash.
Equity providers require a rate return target, which is higher than the interest rate debt
financing. This is to compensate the higher risks taken by equity investors as they have
junior claim to income and assets of the project (Jae, 2018).

When a new project goes public, it is acquiring capital investment on a large scale from
many investors. An established project might make a capital investment using its own cash
reserves, or seek a loan from a bank. If it is a public project, it might issue a bond in order to
finance capital investment (Lori, 2019). A decision by a stakeholder to make a capital
investment is a long term growth strategy. A project plans and implements capital
investment in order to ensure its growth in future. Capital investments generally are made to
increase operational capacity, capture a larger share of the market and generate more
revenue (Elsevier. B.V, 2015).

2.2.4 Project time

Stakeholders can be a considerable asset, contributing knowledge, insight and support in
shaping a project brief as well as supporting its execution (Bourne and Walker, 2005). The
high failure rate of major projects has been attributed to a lack of attention to stakeholders.
The problem of delays in the construction industry is a global phenomenon, delays and
disruptions are the challenges faced in the course of executing construction projects. Delay

20
is defined as the slowing down of work without stopping construction entirely and that can
lead to time overrun beyond that the parties have agreed upon for the delivery of the project
(Kauppinen, 2009).

A construction project is basically a temporary endeavor with specified time and cost,
initiated to create a unique product, service or result. The project-team comes together to
create that unique development on a particular site under circumstances that will never be
repeated. They may be complex, demanding high level of co-ordination of permissions,
people, goods, plant and materials and construction can begin despite many uncertainties,
and as a consequence, delays are common (Tillman, 2012).Time management is the process
of organizing and implementing a strategy related to the time required for work activities on
a project. Effective time management is essential to successfully and efficiently meeting
budget and programme targets, as well as achieving profitability. Projects can risk incurring
unnecessary costs and delays as a result of ineffective time management, either by failing to
allow for the full complexity of a project, or by failing to effectively manage scheduled
work or unexpected events (Ballard, 2008).

On large projects, the client may appoint a programme consultant to prepare a detailed
programme for the project including an outline programme for construction if a contractor
has not been appointed. Once the contractor is appointed, they will take responsibility for
programming the construction works, but the programme consultant may continue to
develop an overall programme for the client (Mitropoulos, 2002). During the planning stage,
all work activities should be properly understood, and planned in detail to optimize the
allocation of resources and reduce the potential for ‘unknowns’. Estimates can then be made
of how long each activity will take. This is critical to the setting of milestones and deadlines,
for allocation of resources, and for determining the pricing of contracts and cash flow
requirements (Beirle, 2001).

Furthermore, the involvement of advanced technologies and owner-desired-changes makes

it even more difficult to keep a project on the scheduled track. Coupled with this state are
innate uncertainties and sophistication in the physical, financial and economic environment

21
in which most projects are performed (Burke, 1979). Such conditions have made completing
projects on schedule and on a budget a difficult task to accomplish, often leading to claims
on cost compensations and time extensions. Construction delays are considered as time lag
in completion of activities from its specified time per contract or can be defined as late
completion or late start of activities to the baseline schedule, directly affecting specified
cost. As a result, there will be extensions of time required which will further result in fine,
increased cost due to inflation, termination of contract, court cases etc. or combinations of
above stated factors, resulting in delays damages (Dianne and Day, 1977).

The concept of float describes the time that an activity can be delayed without changing the
overall project duration. The float is obtained by subtracting the duration of activities from
the available time (Kirklin, 1995). The critical path is determined by all activities were the
total float is zero. The critical activities have to be carried out without delay, any
modification in their duration results in change in the project’s duration. The duration of an
activity can sometimes be reduced by adding additional resources, but this will also increase
its cost (Oakley.P, 2013).

In addition to assigning dates to project activities, project scheduling is intended to match

the resources of equipment, materials and labor with project work tasks over time. Good
scheduling can eliminate problems due to production bottlenecks, facilitate the timely
procurement of necessary materials, and otherwise insure the completion of a project as
soon as possible (Manus,J. 2004). In contrast, poor scheduling can result in considerable
waste as laborers and equipment wait for the availability of needed resources or the
completion of preceding tasks. Delays in the completion of an entire project due to poor
scheduling can also create havoc for owners who are eager to start using the constructed
facilities (Patton M.Q, 2008).

Construction delays are often result of mismanaged events and can be seen as risk for the
projects, which if identified, analyzed and managed in a systematic process at inception,
could be managed, minimized, shared, mitigated or accepted to give some good results and
minimize chances of further delay (Robinson S. 2009). Delay in construction project has a

22
negative effect on clients, contractors and consultants in terms of growth in adversarial
relationships, mistrust, litigation, arbitration and cash-flow problems. A construction project
may be regarded as a successful endeavor until it satisfies the cost, time and quality
limitations applied to it. However, it is not uncommon to see a construction project failing to
achieve its goals within the specified cost, time and quality (Tabish S. 2012).

Construction delays occur either as a liability on part of the client and his team, liability on
part of the contractor and his team, social political issues through the changes bye- laws,
statues etc. The effects of these delays is always debilitating on construction project
performance. A primary concern of construction clients is that their projects are completed
within budget, on time, and at the required level of quality. Hughes and Williams (1991)
propose that these factors are the three points of a triangle and that neglecting one factor will
have a corresponding detrimental effect upon the other two. Timely completion of a
construction project is frequently seen as a major criterion of projects success by clients,
contractors and consultants alike (Zwikael,O. 2008).

Delay is a pervasive phenomenon in construction project delivery. It is branded as the most

common, costly and risky problem encountered in construction project with a debilitating
effect on the parties to a contract (Scott, 2007). The findings from the views of construction
stakeholders is that financial/ cash flow difficulties facesby clients, contractors and public
agencies are the top significant causes of delay in construction project delivery. It is
pertinent that adequate funding should be guaranteed by stakeholders before commencement
of any project (Cardenas, 2018).

Stakeholders should be involved in budgetary planning to ensure adequate funding of the

project otherwise alternative source of finance or project arrangement such as BOOT and
BOT which allows contractors to participate in the design and financing of new projects
(Marco, 2004). Stakeholders should also be involved in project planning and the
establishment of sufficient quality control mechanisms should be put in place to avoid
design changes. Appropriate time should be allocated to careful production of designs and
complete tender documents, so as to improve the quality of contract documents with

23
minimum errors and discrepancies and reduce delay during the construction stages (Jae,
2018).

2.2.5 Project quality

The issue of ensuring that construction projects achieve high quality outcomes continues to
be an important consideration for key project stakeholders. Quality in the construction
industry has been considered extensively with main parties involved in project lifecycle
such as owners, project sponsors, projects and construction manager and constructors of
building and infrastructure projects (Archterkamp and Vos, 2008). Deming (1986) stresses
the value of key participants of projects as a source of information achieve a desired levels
of quality. He added “It is stakeholder perceptions of quality levels that are important”.

Quality in construction industry can be defined as the attainment of acceptance levels of

performance from construction activities. This performance would be attained when the
activity meets or exceeds the requirement of the client or the owner. The quality of any
product or service is achieved when it conforms to the desired specifications. Achieving
quality in construction industry in long run is a tough issue and has been a problem.
Inefficient or no practice of quality management procedures will result in great loss of time,
money, material and resources (Neupane, 2012). Construction projects are a balance
between cost, time and quality. It is possible to have high quality and low cost, but at the
expense of time and conversely to have high quality and a fast project, but at a cost. If both
time and money are restricted, then quality is likely to suffer. High quality is not always a
primary objective for the client; time or cost may be more important. It is only realistic to
specify a very high standard of quality if the budget and time is available to achieve that
standard (Austin. T, 1986).

The quality of construction projects is influenced by various factors one of them being the
project’s requirement; quality of any construction project is meeting the respective project
requirements. This will satisfy the designer’s requirements, the constructors and the owner’s
requirements. Based on different studies considered it is concluded that the commitment and

24
the leadership of an construction organization will affect the quality of the project. There is
decline in construction productivity, if the management practices are poor (Collier, 1984). A
structured environment is provided by having quality teams for the project. Practices are
implemented structurally and continuously with regular quality checks. Quality teams will
have structural engineers, environmental engineers, electrical, civil engineers, architects and
owners to bring quality goals. The participation of the quality team members is not only
important in the planning stage but also during the construction phase of the project.
(Dipasquale. D. 1982).

Quality has been defined by many academics as delivering a customer’s service or product
without a defect being present. As such it is vitally important that briefing documents set out
clearly the product specifications that are required. Specific standards of quality can
generally be defined, prioritized and measured quite precisely and criteria weighing can help
in the appraisal of design options, in particular where conflicting views exist among
stakeholders (Goss, C.A, 1980). The standard of quality that the design team tries to achieve
should reflect the requirements set out by the client in the briefing documentation. The
client should then be able to assess design options that are proposed in relation to the criteria
they have already defined (Addison, 1973).

It is important that assessment of design quality is carried out in a structured, formal way
and is properly recorded. The client may appoint an internal design champion to be
responsible for ensuring the design achieves the required design quality. If the client has
little experience of design and construction projects, they may wish to appoint an
independent client adviser to assist them (Crandal.K.C, 1973). The client may also have to
consult third parties during the design process, such as the local planning authority, which
may have a view about the quality of the proposals. The national planning policy framework
suggests that plan making and decision taking should seek and secure high quality.
(Hendrickson, 1984).

There are a large number of factors that may influence the effectiveness of a project quality
management program. Some barriers to successful management system implementation at

25
construction organizations involve the nature of the construction process. The projects are
unique, locations vary, work volume fluctuates, staff changes, the work is labor intensive,
the workforce tends to be transient, projects are subject to change and delays, the key team
members routinely change, the supply chain is extensive, multiple organizations are
involved that have differing visions, values, processes and practices, weather can vary, some
partners fail to deliver on their promises, the industry is generally confrontational rather than
cooperative in relationships are driven by general self-interest (Mugenda, 2003). In addition,
the industry is conservative and slow to embrace change. Most contractors are small and
lack sophistication and resources. Effectively managing quality becomes challenging due to
these and a multitude of other factors (Lester, J. 2007).

Stakeholders can provide tangible value, supportive feedback information about how they
are influenced by the project or service and are able to assist with delivery of the output.
Quality has been variously defined as value, conformance to requirements, loss avoidance,
and meeting and/or exceeding customers’ expectations (Mitchell et.al, 1997). However, in
the construction industry the application of quality issues and tools among stakeholders has
been more complicated due to its reactive nature and the complexities of the construction
projects. A significant amount of research into quality management in the construction
industry has been undertaken but few studies have been completed to examine the role of
stakeholders in improving project quality within the industry (Rabe and Betsil, 2009).

Since construction projects have become larger and more complex they possess greater
numbers of interested stakeholder. Establishment of a system to make greater use of
stakeholder involvement in assisting to provide input into quality management is a great
help to achieve better levels of quality within the industry and need to be more considered.
Brian and Martin (2008) and other scholars studying the construction sector have realized
that stakeholder involvement has undeniable impacts on project outcomes, and identification
of the theory of stakeholders’ management has therefore developed more in recent years.
Having the needed resources and are able to control the interaction and resource flows in the
network, stakeholders most likely have a strong impact on an organizations survival. To
meet the differing demand of the various stakeholders, project managers have to involve

26
these stakeholders in order to increase effectiveness and efficiency of the decisions making
in the construction project lifecycle (Adrienne. W, 2014).

2.2.6 Labour Management

The construction sector has a very strategic role in development, primarily in the provision
of infrastructure and facilities that support the development of a country. Currently the
construction sector continues to experience rapid growth. These developments affect the
increased needs of the elements associated with the construction services sector, one of
which is labour (Windberg, 2009). Workforce is one of the important elements that affect
the continuity and smooth implementation of construction projects. Availability of labours
that have good scales is a key factor to get a good quality product (Phillips. R, 2003).

Labour management is one of the important techniques used by project managers in

construction project management. A good project management in construction should
vigorously pursue the efficient utilization of labour. With a proper labour management, the
availability of labour will always sufficient to carry out all construction work and completed
on time without any delaying of work, Thus, time and cost loses will be minimized (Harris,
2005). Labour productivity in construction is the amount of goods and services that a
laborer produces. Labour with good performance may lead to high productivity; however,
there are several factors that would affect the job-site productivity which is labour
characteristics, project work conditions and non-productive activities (Pitcher. R. 1992).

Equally important, quality and contribution of workers are being assessed by using
performance analysis. In this performance analysis, several factors that can be evaluated
involve quality of work being completed, adequate quantity of work, initiative (able to do
work without any instruction from others), job knowledge (apply knowledge, method and
skill lead to high performance), communicative ability (ability to communicate with
supervisor, subordinate and top management in the way of written or spoken), (Hughes.T.
1991) judgment (fairness on decision making, conclusion and allocate tasks), related work

27
knowledge ( have some basic knowledge and understanding to carry out task), resource
utilization (able to coordinate the need of the project and effectively use of resources
available), dependability (a person who being trusted to perform responsibility), analytical
ability ( able to analyze problem and come out with conclusion), interpersonal skills ( good
relationship between people) and ability of labour to work under pressure (Pitcher.R, 1992).

Construction labourers can be found at construction sites where they performing a wide
range of tasks from the basic to the most difficult. Nevertheless, they are having different
labour characteristic including their age, skill and experience of working (Achterkamp,
2008). Besides, leadership and motivation of labour also different among each other. In
addition, certain skill and experience is needed to apply in construction site such as
determining the slump of concrete, whether concrete is suitable to use or not. Furthermore, a
supervisor with good leadership can motivate and influence their workers to work loyally
and happily without any prejudice among labourers (Brian.A, 2008).

Furthermore, labour characteristics also include security sensitive (how a labour is able
handle to handle their confidential information correctly in the sense of secure), safety
consciousness (worker has the awareness towards their own and others’ safety as well as
safety practices on site), profit and cost sensitivity (ability to look out, giving or contribute
idea on how to making revenue) and planning effectiveness (capability on planning, foretell
future and set goal) (Deming,.W.E, 1986). Thus, managers have to forecast the conditions
on the site first before they can employ labours to carry out schedule work. Otherwise, low
quality of labour can results in low quality of work and hence delays timing that will bring
unsatisfactory from clients (Freeman and R.E, 1984).

Similarly, project work conditions involve job size and complexity, job site accessibility,
labour availability, equipment utilization, contractual agreements, local climate and local
cultural characteristic. Besides, a specific set of work conditions can be used to estimate
labour productivity for each type of craft and construction (Jeffery, 2009). The manager of
the project can specify a base labour productivity (work condition) as a purpose to monitor
and evaluate their labour performance at a certain period of time. Then a labour productivity

28
index is used to measure the relative labour efficiently of the project. Hence, productivity of
labour can be supervised with this type of measurement. Labour productivity index is
referring to the ratio of the job-site labour productivity to the base labour productivity (Lori,
2019).

Labour management in building construction means controlling the manpower problems,

improving labour productivity and reducing time and cost overrun of projects. To improve
the labour performance, there will be the need of stakeholder’s involvement (Elsevier.B.V,
2015). Stakeholders involvement affect labour management practices like manpower
planning, recruitment, selection, training and development, motivation and safety and health
at work. Manpower planning has becomean important management tool for balancing and
structuring the skills of the workforce. Stakeholders help in putting right number of people,
right time, doing the right things for which they are suited for the achievement of goals of
the organization (Kauppinen, 2009).

Selection is defined as the process of choosing the best labour from all construction labour
and process of putting right men on right job. In other word, selection is the procedure of
matching organization requirements with the skills, and qualifications of to be employees
(Tillman, 2012). Selection can be used to attract and hire new employees who have abilities,
skills, and experience that will help an organization achieve its goals. Motivation may be
defined as the characteristics of an individual willing to expend effort towards a particular
set of behavior. Stakeholders help improve the workers’ motivation as low motivation result
in low morale, low productivity, conflicts, rework and high employees’ turnover (Ballard,
2008).

2.3 Review of Critical Literature

Interest in stakeholders has grown considerably since Freeman (1984) seminal work
“Strategic Management: A stakeholders Approach” was published. The interaction and
interrelationships between stakeholders largely determine the overall performance of a
construction project, and have the crucial responsibility for delivering a project to
successful completion. Stakeholder management is an important issue in project

29
management as a project can be seen as a temporary coalition of stakeholders to create
something together (Mitropoulos, 2002).

A primary concern of construction clients is that their projects are completed within
budget, on time, and at the required level of quality. Hughes and Williams (1991) propose
that these factors are the three points of a triangle and that neglecting one factors will have
a corresponding detrimental effect upon the other two. Stakeholders’ involvement in The
house of prayer, Machakos helped in the contribution of the projects working capital which
is the resource required to facilitate the smooth execution of the construction work on site.
Stakeholders contribute to the wealth creating capacity of a project and are therefore, its
potential beneficiaries and/or risk bearers (Beierle, 2001).

Stakeholders help in timely completion of a construction project which is seen as a major

criterion of project success by clients, contractors and consultants alike. The problem of
delays in the construction industry is a global phenomenon, delays and disruptions are the
challenges faced in the course of executing construction projects (Burke, 1979). Quality in
the construction industry has been considered extensively with main parties involved in
project lifecycle such as owners, project sponsor, projects and construction managers and
constructions of building and infrastructure projects. Stakeholders can provide tangible
value, supportive feedback information about how they are influenced by the project or
services and are able to assist with those delivering the output and improve quality (Dianne
and Day, 1977).

Workforce is one of the important elements that affect the continuity and smooth
implementation of construction projects (Kirklin, 1995). Availability of labours that have
good scales is a key factor to get a good quality product. Labour management in building
construction means controlling the manpower problems, improving labour productivity and
reducing time and cost overrun of projects (Oakley. P, 2013).
2.4 Summary of Gaps to be filled by the study
From the foregoing reviewed literature, there exist past studies on factors affecting
stakeholders’ involvement in construction projects however, these studies were limited to

30
different industries, sectors and institutions. This research therefore sought to fill the
knowledge gap by researching stakeholders influence on construction projects.

For instance, O’ Halloran, (2014) who carried out a study on extent to which awareness of
stakeholders’ management influence construction project performance in the construction
industry in Ireland; this study found that stakeholders management influence construction
project performance and contributed to the project’s success and Njogu (2016) who
investigated stakeholders’ involvement influence on Nema Automobile Emission Control
Project performance in the County of Nairobi City; this study found out that stakeholders
involvement affected the project outcome, this study was limited to Nema Automobile
Emission Control Project and hence the findings are not generalizable to construction
projects, this study focused on projects of road construction performance.

Other studies have been done in developing African countries such as Kobusingye (2017)
The relationship between stakeholders’ involvement and outcomes of projects with a
special focus on the Wash Project in Rwanda; this study found that stakeholders
involvement in project initiation, planning, implementation, and review contributed to
project outcome and Menoka, (2014) who examined stakeholder management challenges
and their impact on project management in the case of advocacy and empowerment in the
upper east region of Ghana. From the reviewed literature, the researcher noted thatit should
be mandatory for a project manager to identify the stakeholders and manage their
expectations throughout the life cycle of the project because influence and power of a
stakeholder can affect the success or failure of any project.

2.5 Conceptual Framework

According to Mugenda and Mugenda (2006), a conceptual framework is a systematic
representation of the relationship between the variables of the study. It shows the linkage
of the research objectives to the topic as shown here below;

31
 Independent variables Dependent variable

Availability of Capital

Project Time
Stakeholders Involvement

Project Quality

Labour Management

Source: Author, (2020).

Explanation of the variables

2.5.1 Availability of Capital
Capital is wealth in form of money or other assets owned by a person or organization or
available for a purpose such as starting a project, company or investing. According to Harris
and Mc. Caffer (2005), the contractors’ working capital or finance is the resource the project
manager requires to facilitate the smooth execution of the construction work on site. It is
made up of cash at hand, bank loan overdraft, credit purchases, work- in- progress,
recoverable debt. Stakeholders contribute to the wealth creating capacity of a corporation
and are therefore, its potential beneficiaries and/or risk bearers. They act as gatekeepers to
resources that firms need.

2.5.2 Project time

Project time is well defined as the budgeted duration of completion of the projects activities.
The problem of delays in the construction industry is a global phenomenon, delays and
disruptions are the challenges faced in the course of executing construction projects. Delay

32
is defined as the slowing down of work without stopping construction entirely and that can
lead to time overrun beyond that the parties have agreed upon for the delivery of the project.
Timely completion of a construction project is frequently seen as a major criterion of
projects success by clients, contractors and consultants alike.

2.5.3 Project quality

Project quality is the degree of excellence that a project is supposed to be executed, to meet
or exceed the stakeholders’ expectations. Quality in the construction industry has been
considered extensively with main parties involved in project lifecycle such as owners,
project sponsors, projects and construction manager and constructors of building and
infrastructure projects (Archterkamp and Vos, 2008). Deming (1986) stresses the value of
key participants of projects as a source of information achieves a desired level of quality.

2.5.4 Labour management

Labour management is a managerial discipline that involves or entails the policies, rules,
regulations, procedures and competencies which govern and regulate workforce in
organizations or companies. Workforce is one of the important elements that affect the
continuity and smooth implementation of construction projects. Availability of labours that
have good scales is a key factor to get a good quality product.

33
 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter will discuss various data collection methods proposed to be applied in the
study. The study will use several techniques. This chapter presents study design, target
population, sampling design, data collection procedures and instruments, data analysis
methods.
3.2 Research design
This will be a descriptive research requiring in-depth analysis in order to understand the
influence of stakeholders’ involvement in construction project. The design is expected to
bring about insights and explore the effects of stakeholders on construction projects.

3.3 Target population

The employees of Isolation Center- Machakos Level 5 Hospital are the target population in
this study. The opinions of the management and that of the workers will be sought. This will
provide an avenue on an assessment of factors affecting stakeholders’ involvement in
construction projects (Mugenda, 2003) . The data below was obtained from the Head of the
H.R department Machakos Level 5 Hospital. Table 3.3.1 illustrates the distribution of target
population within the house of prayer Machakos.
Table 3.3.1 Target Population Table
Category Population Size Percentage (%)
Project managers 2 2
Supervisors 2 2
Project engineers 2 1
Project contractors 4 2
Project architecture 2 4
Quality surveys 2 4 1
Masonry workers 20 20
Casual workers 50 50
Total 84 42
Source: Isolation Center Machakos Level 5 Hospital-Machakos County (2020)
3.4 Sampling design and procedure
Sampling design refers to the rules and procedures by which some elements of the
population are included in the sample. Stratified random sampling design will be used in the

34
study. It involves dividing your population into heterogeneous jobs group and then taking a
random sample in each group. This method will be appropriate because it will be able to
represent not only the overall population but also the key sub groups of the population. This
method will also be the best because it minimizes biasness. According to Mugenda (2003) a
sample size of 10% or more is appropriate for any research study. The researcher will select
42 respondents representing 50% of the target population as shown in the table below
Table 3.4:1 Sampling Design
Category Target Population Sample Size Percentage (%)

Project managers 2 1 1
Supervisors 2 1 1
Project engineers 2 1 1
Project contractors 4 2 2
Project architecture 2 1 1
Quality surveys 2 1 1
Masonry workers 20 10 13
Casual workers 50 25 30
Total 84 42 50
Source: (Author, 2020)

3.5 Data collection and procedures

The researcher will use questionnaire as the main data collection instrument. The researcher
decided to use questionnaires as the research tool because it is practical and allows large
amount of information to be collected from a large number of people in a short period of
time and in a relatively cost efficient way . This will consist of both structured and
unstructured questions to avoid being too rigid and to quantify the data especially where
structured items will be used. The researcher used the drop and pick method to administer
the questionnaires and then later followed up using the telephone method since some
respondents failed to return their questionnaires. This method will help the researcher to
collect reliable information.

3.5.1 Reliability and validity of study

35
Reliability refers to the consistency of the research and the extent to which studies can be
replicated. The questionnaires will be pilot tested using ten respondents, part of the
population that would not be in the sample size. Later the items will be modified and others
discarded in order to improve the consistency of the items. A survey is conducted to
measure the response of the respondents. If the results accurately predict the previous
outcome of research studies conducted by earlier scholars, this indicates that the survey has
high criterion validity. The survey and pilot study will enable the researcher to eliminate
ambiguous questions and to ensure that the space provided is adequate to improve the
quality of the research instruments thus increasing validity and reliability.

3.6 Data analysis methods

To classify, manipulate and summarize data for interpretation, data collected will be
analyzed using descriptive statistics. This will involve cross tabulation of dependent
variables (stakeholders’ involvement in construction projects) and independent variable
(availability of capital, project time, project quality and Labour management). The
researcher will use tables, graphs and charts to present the findings.

REFERENCES
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Addison and Wesley, (1973): Introduction To Systems Engineering Deterministic

Models.

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Adrienne Watt, 2014. Risk Management planning. A. Watt, Project Management, 150-
158. Advanced Engineering study, USA.

Austin, T. and C. Hendrickson, (1986): Profit Measures for Construction Projects.

Authority.

Ballard (2008): The Lean Project Delivery System.

Beierle, Thomas C. and D. Kanisky, (2001): What are we gaining from stakeholders
Blackwell Publishers.

Brian, A., and Martin, S. (2008). Stakeholder management in construction.

Burke, Edmund M. (1979). A participatory- approach to urban planning.

Cardenas, Voordiik, H and Geert, D, (2018): Beyond Project Governance Enhancing

Collier, C.A and D.A Halperin (1984): Construction Funding: Where the Money comes
construction projects. International journal of project management,23(4), 321-
328.

Crandal. K.C, (1973): Project planning with Precedence Lead Factors: Project

Deming, W.E. (1986). Out of the crisis. Massachusetts Institute of Technology, Centre
for Advanced Engineering study, USA

Dianne and Day. (1977).Journal of planning literature.

Dipasquale, D. and C. Hendrickson (1982): Options for Financing a Regional Transit

Authority

Elsevier B.V (2015). International Journal of Project Management.

Formulation of Several Civil Engineering.

Freeman and R.E, Strategic Management (1984).A stakeholder Approach. Boston:

Goss C.A (1980): Financing: The Contractors Perspectives.

Harris and Mc. Caffer (2005). Modern Construction Management (5rd edition). London

Hendrickson and Janson B.N, (1984): Civil Engineering Systems: A Common Network
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Hughes, T. and Williams,T.(1991) Quality Assuarance. (Oxford: BSP professional Books

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Jae Myong (2018): Green Infrastructure Financing: Institutional Investors

Jeffery and Neil, (2009).Stakeholder Engagement: A Road Map to Meaningful

Engagement.

Kauppeinen and Savolainen (2009).From feature development to customer value

creation.

Kirklin, John. (1995).Environmental planning.

Kobusingye, (2017): The Relationship Between Stakeholders Involvement and Outcomes

of Projects on the Wash Project in Rwanda.

Lester, J., and Bernald, L.E. (2007).Innovative process to characterize buried utilities
using ground penetrating radar. Automation in Construction, 16(4), 546-555

Lori, (2019). Proficient Learning: Software Development Manager.

Marco Sorge, (2004): The Nature of Credit Risk in Project Finance.

Manus, J. (2004): A stakeholder perspective in software project Management.

Menoka, (2014): Stakeholders Management Challenges and their Impact on Project

Management in Ghana.

Mitchell et.al, Agle.B.R and Wood, D.J (1997).Toward a theory of stakeholder

identification and salience defining the principle of who and what really counts.
Academy of Management Review, 22(4), pp. 853-887

Mitropoulos and G.A Howell, (2002): Renovation projects design process problems and
improvement mechanism

Mugenda, (2003): Quantitative and Qualitative Research Methods: 2nd Edition.

Neupane, (2012): Project Finance Cross Border Risks in Nepal.

Njogu, (2016): Stakeholders Involvement Influence on Nema Automobile Emission

Control Project Performance in the County of Nairobi.

O’ Halloran, (2014): The Extent to which Awareness of Stakeholders Management

Influence Construction Project Performance in the Construction Industry in
Ireland

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development.

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Patton M.Q, (2008): Utilization- focused evaluation.

Phillips.R, (2003).Stakeholder theory and organization ethics: Berrett- Koeher

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Pitcher, R.(1992). Principles of Construction Management (3rd edition). England:

McGraw- Hill

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Robinson, S. (2009): Research methodology

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Zwikael, O. (2008): Top Management involvement in Project Management.

APPENDIX I
INTRODUCTORY LETTER

BRIAN MURIUKI MITHAMO,

P.O. BOX 467-90100,

39
MACHAKOS.

Dear Respondent,

RE: ASSISTANCE IN FILLING THE QUESTIONNAIRE

I am a student of The Kenya Institute of Management pursuing a diploma course in
project management. For the successful completion and award of this diploma, I would
like to gather information on ‘An assessment of factors affecting stakeholders’
involvement in construction projects in Kenya. I therefore kindly request you to please
read carefully and understand the questions as you answer them to your level best by
ticking, rating, specifying or writing the correct answers precisely on the spaces provided.
Your participation will remain anonymous. Data from this research will be kept under
lock and only to be used for academic purposes.

Yours faithfully,

Brian Muriuki Mithamo.

APPENDIX II
QUESTIONNAIRE
The questionnaire below is on an assessment of factors affecting stakeholders
involvement in construction projects in Kenya. This questionnaire is prepared for the

40
purpose of collecting data for my research project. All the information that you will give
will be treated as confidential.

SECTION A: PERSONAL DETAILS

Please tick (√) or explain where applicable in the boxes
1. State your gender
Male
Female
2. State your age
Below 18 years
18-25 years
26-32 years
32-39 years
40-46 Years
Over 46 years
3. Experience on the project
Below 3 years
3 – 10years
Above 11 years

4. What is your level of education?

Primary
Secondary
Diploma
University
Others

SECTION B
AVAILABILITY OF CAPITAL

5. Does availability of capital affect stakeholder’s involvement in construction projects?

41
 Yes

No

6. To what extent does availability of capital affect stakeholder’s involvement?

Most Significant

Significant

Less Significant

Insignificant

7. How does stakeholder’s involvement affect the availability of capital?

................................................................................................................................................
................................................................................................................................................
...............................................................................................................................................

PROJECT TIME
8. Does project time affect stakeholder’s involvement in construction projects?
Yes
No
9. To what extent does project time affect stakeholder’s involvement?

Most Significant

Significant

Less Significant

Insignificant

10. How does stakeholder’s involvement in construction projects affect project time?

................................................................................................................................................
................................................................................................................................................
................................................................................................................................................
42
 PROJECT QUALITY

11. Does project quality affect stakeholder’s involvement in construction projects?

Yes
No

12. What is the extent of project quality in the construction projects?

High

Medium

Low

13. How does stakeholder’s involvement affect the project quality?

................................................................................................................................................
................................................................................................................................................
................................................................................................................................................

LABOUR MANAGEMENT

14. Does labour management affect stakeholder’s involvement in construction projects?

Yes

No

15. To what extent does labour management affects stakeholder’s involvement in

projects?

Very High Extent

High Extent

43
Low Extent

Very Low Extent

16. Suggest ways you think stakeholder’s involvement in construction projects affect
labour management?

................................................................................................................................................
................................................................................................................................................
................................................................................................................................................

Thank You.

APPENDIX III
WORK PLAN

ACTIVITIES JULY AUGUST SEPTEMBE OCTOBER NOVEMBE

(2020) R R

44
Identification of
the research
topic
Research topic
and Chapter one

Literature review

Submission of
the research
proposal draft to
the supervisor

Completion of
final proposal

APPENDIX IV:
RESEARCH BUDGET

ITEM COST (Kshs.)

45
 Travelling and subsistence 6,300
Printing 1,000
Typesetting 1, 200
Printing papers 400
Binding 100
Internet 1,200
Miscellaneous 1,800
Total 12,000
Source: Author, (2020).

46